Financial Reporting

CA Final - Paper 1 : Financial Reporting

ICAI has introduced this paper Financial Reporting at the CA Final level where you are taught Accounting standards AS 15, AS 23, AS 27, etc., Guidance notes on topics such as derivatives, Preparation of carve out financial statement etc., and emerging trends in the field of accounting and financial reporting such as carbon credits, accounting for e-commerce, integrated reporting, etc.

More about Financial Reporting

What is Financial Reporting?

Financial reporting is the essence of accounting in any kind of organisation. It essentially covers various areas on the disclosure of financial information to the various stakeholders about the financial performance and financial position of the organisation

This financial information forms the basis for many economic decisions like investing, lending, providing credit etc

Why did ICAI introduce this paper Financial Reporting at the CA Final Level?

Being an aspirant of the Chartered Accountancy profession, achieving expertise in the field of various reporting standards is a necessity as well as a great opportunity

You would have studied fundamentals of accounts in CA foundation level, accounting and advanced accounting at intermediate level. These were aimed at providing working knowledge of these concepts. At the CA Final level, you are expected to obtain proficiency in various financial reporting standards, Indian as well as international

You are also expected to develop skills and knowledge to solve complex areas in the field of financial reporting by practically applying various accounting policies

What are the topics covered in the Financial Reporting paper at the CA final Level?

Accounting standards which were not covered in intermediate level are covered here such as AS 15, AS 23, AS 27, etc.

Guidance notes on topics such as derivatives, Preparation of carve out financial statement etc. However, the main focus at the CA Final level is on Indian Accounting standards (Ind AS) because of its relevance in the context of Convergence to International reporting standards(IFRS) .

About 70-80% of the chapters covered at the CA final level is Ind AS covering various elements of financial statements.

The remaining part of the paper covers emerging trends in the field of accounting and financial reporting such as carbon credits, accounting for e-commerce, integrated reporting, etc.

What is the best approach to study the Financial Reporting paper?

Start early: Considering the volume of syllabus of the paper, it is highly recommended to start your preparation much earlier to exams (at least 14-16 months before)

3 Cs Concepts, Consistency and continuity: There is big difference between knowledge and application. Try to understand every topic from its substance and concepts and not just about remembering it. Also, it is better to study for a few hours daily rather than studying for many hours during the last few days

Study content: There are many books available in the market as well as various books recommended by ICAI. However, from the point of view of exam and to conceptually understand the entire syllabus, study materials given by ICAI is highly recommended. Cover the ICAI syllabus in detail and don’t indulge in any selective coverage of syllabus

Practice, Practice and practice: Financial reporting being a application paper, more practice is required than just reading the theory. Also, try to understand the concepts from different points of view. It is more effective to solve one problem in 10 different ways than solving 10 problems of same kind

Updates: Recently Financial reporting has become a very dynamic subject. This is like a treadmill. To stay where you are, you must keep running. Keep visiting the ICAI website for notifications and amendments applicable for your exam

See how CA Chinmaya Hegde teaches this paper Financial Reporting

Course Content Available

Faculty

Estimated Lectures

Lectures Available in the Portal

CA Chinmaya Hegde

132

132

Available Lectures for Financial Reporting

Paper-1: Financial Reporting

Chapters

No. of lectures

Chapter 1: Application of Accounting Standards

26

Chapter 2: Application of Guidance Notes

3

Chapter 3: Framework for Preparation and Presentation of Financial Statements

1

Chapter 4: Ind AS on Presentation of Items in the Financial Statements

5

Chapter 5: Ind AS on Recognition of Revenue in the Financial Statements

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